Malkapur Urban Co-op Bank Customers Alert! You can now withdrawal only up to Rs 10,000, here’s why

RBI has imposed several restrictions on customers of Malkapur Urban Co-operative Bank in Maharashtra.

New Delhi: The Reserve Bank of India (RBI), on Wednesday (November 24), imposed several restrictions on customers of Malkapur Urban Co-operative Bank in Maharashtra. The steps were taken after considering the deterioration in the lender’s financial position. 

Malkapur Urban Co-operative Bank shall not without prior approval of the RBI renew any loans, make any investment, incur any liability, and disburse any payment, the Reserve Bank said in a statement.

One of the major decisions taken by the RBI on Malkapur Urban Co-op Bank customers is that they won’t be able to withdraw more than Rs 10,000. The decision is imposed on both savings and current account customers. 

"In particular, a sum not exceeding Rs 10,000 of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn...," it added.

The newly announced restrictions will remain in force for six months from the close of business on Wednesday (November 24). 

However, the RBI has made it very clear that the issue of the directions to the co-operative banks should not per se be construed as a cancellation of banking license.

"The bank will continue to undertake banking business with restrictions till its financial position improves," it said. Also Read: RBI slaps penalties worth crores on Tata Communications Payment, Appnit Technologies

The Reserve Bank may consider modifications of these directions depending upon circumstances, the statement said. Also Read: WhatsApp Update: Now, you can make custom stickers on messaging platform, here’s how

- With PTI inputs.